VCAT Tightens Voting Rules

A recent VCAT decision has introduced a significant change that could reshape how Owners Corporations (OCs) make decisions. The ruling places a much higher bar for consensus on non-monetary actions, making collaboration and communication more critical than ever.

Higher Bar for Action

OCs must now secure a 75% vote from all lot owners to proceed with non-monetary actions. This includes decisions such as:

• Initiating legal proceedings
• Amending building rules
• Other governance-related actions that don’t involve direct spending

This is a major shift from previous requirements and means that even routine governance changes will require broad agreement across the community.

Implications for OCs

Plan Ahead for Major Decisions: If your OC anticipates changes to rules or legal action, start conversations early.

Improve Communication: Transparent updates and clear explanations of why actions are necessary will help secure support.

Document Everything: Ensure voting processes are compliant and well-recorded to avoid disputes later.

Consider Mediation: For contentious issues, mediation may help achieve the required level of agreement without escalating conflict.

Beyond Voting

Achieving 75% vote is no small feat, especially in larger or more diverse strata communities. This change could slow down decision-making and make it harder to act quickly on important issues.

For committees, the focus now needs to be on building consensus early and maintaining strong engagement with all owners.

This VCAT ruling underscores the importance of proactive governance. With a 75% vote now required for non-monetary actions, OCs must prioritise owner engagement and consensus-building. Decisions that once seemed straightforward will now demand careful planning and communication.